On-device wallets can be used to conduct small transactions up to Rs 200 when UPI Lite is enabled on the BHIM App. A maximum of Rs 2000 can be added to the wallet by a user at any given time.
New Delhi: UPI Lite could be your savior if you are tired of repeatedly entering your UPI pin for insignificant payments. Shaktikanta Das, governor of the Reserve Bank of India, has introduced a new service for residents named “UPI Lite.” Users can conduct small transactions up to Rs 200 in a nearly offline fashion without requiring their UPI pin.
An “on-device” wallet can be used to conduct low-value transactions after this feature is enabled on the BHIM App. It might resemble other wallets that are available on the market. A maximum of Rs 2000 can be stored in the wallet at any given time.
How does it serve?
In order to make Transactions using UPI Lite on the BHIM App, the service will have a UPI Lite balance, which is the virtual “on-device” balance enabled by the User from the Account.
Customers of the State Bank of India (SBI), Union Bank of India, Utkarsh Small Finance Bank, Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, and Punjab National Bank will be able to use the UPI Lite payment system.
Advantages of UPI Lite
- relaxation after repeatedly inserting your UPI pin.
- Uninterrupted UPI transactions will be possible.
- Up to Rs 200 can be spent on transactions with UPI Lite.
- The maximum amount that users can add to their UPI wallet at any given time is Rs 2000.
- Only one Account can have UPI Lite enabled in the app.
What is the need for UPI Lite?
90% of UPI transactions are for amounts under Rs 200. The action will ease the banks’ debit strain while also improving the convenience and efficiency of the procedure. It is anticipated that fewer unsuccessful transactions will occur.